WHAT IS DSS?
A DSS is a computer-based information system that
supports business or organizational decision-making
A DSS is a collection of integrated software applications and
hardware that form the backbone of an organization’s
decision making process and help to make decisions, which
may be rapidly changing and not easily specified in advance.
DECISION SUPPORT SYSTEMS
1. Refers to class of system which supports in the process of
decision making and does not always give a decision itself.
2. Decision Support Systems supply computerized support for
the decision making process.
3. End-users actively work with the data warehouse.
4. End-users apply models to represent, understand, and simplify
the decision situation.
DECISION SUPPORT SYSTEMS
1. Medical diagnosis.
2. Business and Management.
3. Agricultural production.
4. Forest management.
COMPONENTS AND STRUCTURE OF DSS
Includes the database(s) containing relevant data for the decision
Enables the users to communicate with and command the DSS
Includes software with financial, statistical, management science, or
other quantitative models
Provides knowledge for solution of the problem; supports any of the
other subsystems or act as an independent component
BENEFITS OF DSS
Improves personal efficiency
Speed up the process of decision making
Increases organizational control
Encourages exploration and discovery on the part of the decision
Speeds up problem solving in an organization
Facilitates interpersonal communication
Promotes learning or training
Generates new evidence in support of a decision
Creates a competitive advantage over competition
Reveals new approaches to thinking about the problem space
Helps automate managerial processes
Create Innovative ideas to speed up the performance
GROUP DECISION SUPPORT SYSTEM
An interactive computer-based system used to facilitate the solution of
A set of decision makers working together as a group.
GDSS make meetings more productive by providing tools to facilitate
planning, generating, organizing, and evaluating ideas; establishing
priorities; and documenting meeting proceedings for others in the firm.
Originally developed for meetings in which all participants are in the same
COMPONENTS OF GDSS
Hardware: Including conference facilities and electronic hardware.
Software tools: Including electronic questionnaires, brainstorming tools,
idea organizers, questionnaire tools, voting tools; stakeholder
identification and analysis tools; policy formation tools, and group
People: Refers not only to the participants but also to a trained facilitator
and often to a staff that supports the hardware and software.
FUNCTIONS OF GDSS APPLICATIONS
Predicting decision outcomes.
Identifying factors and trends.
Developing models of business processes.
Computing optimum mixes.
Facilitating group communication, collaboration and teamwork.
Determining sensitivity of results to changes in decision variables.
Becoming familiar with a problem domain.
GDSS – BUSINESS VALUE
Using GDSS, productivity can increase with increase in number of
GDSS software tools follow structured methods for preserving results of
meetings, enabling non-attendees to locate needed info after the meeting
GDSS meetings can increase number of ideas generated and quality of
decisions while producing the desired results in fewer meetings
Most useful for tasks involving idea generation, complex problems and
Help senior managers with unstructured problems that occur at the
strategic level of the firm.
Combining the internal and external sources.
Helps to monitor :
Track activities of competitors,
o Increases organizational control.
o Reveals new approaches to thinking about the problem space.
o Encourages exploration and discovery on the part of the decision maker.
o Creates a competitive advantage over competition
Drill down-ability to go to details at several levels
Critical success factors-most critical for success of business
Key performance indicator
Status access-latest data available on Knowledge Process (KP)
Trend analysis-short , medium and long term trend on KP
Adhoc analysis-analysis made anytime upon demand
Exception reporting-report that highlight deviations larger than certain
DSS OBJECTIVES :
1. Increase the effectiveness of the manager's
2. Supports the manager in the decision-
making process but does not replace it.
3. Improve the directors effectiveness of